Sui’s (SUI) price could be on the verge of undergoing another decline despite losing a major part of its value since January. Earlier in the year, SUI’s price traded above $5.
Today, the altcoin has plummeted to $2.22. The bearish breakdown happened due to selling pressure, indicating further downside. Will SUI find stability, or is another decline inevitable?
SUI Slips Under Support
On the daily chart, CCN observed that SUI’s price fell below $3 because it broke below the neckline of a head and shoulders pattern.
The head-and-shoulders pattern is a bearish reversal pattern. It consists of three peaks, with the middle peak (the “head”) higher than the two outer peaks (the “shoulders”), indicating a bullish to bearish movement.
As shown below, the pattern’s head is positioned at $5.29. The left and right shoulders stood around $3.79, while the neckline hovered near $3.05.
From the image below, SUI failed to rebound after it plunged below the neckline. Bulls also failed in their attempt to defend the altcoin from sliding under the $2.52 support. The Chaikin Money Flow (CMF) also dropped below the zero signal line during this decline.
The decline in the CMF reading indicates increasing distribution. Therefore, if the indicator’s rating continues to fall, SUI’s price might follow the same direction.
SUI Price to Faces Deeper Drop
Further assessment of SUI’s price action shows that the token might find it challenging to rebound. First, the Moving Average Convergence Divergence (MACD) has dropped to the negative region, indicating bearish momentum.
On the daily chart, the 26-day Exponential Moving Average (EMA)—in orange—has also crossed above the 12 EMA (blue), validating the bearish trend.
In addition, the Supertrend indicator’s red line is above the market price and near the 0.50 Fibonacci retracement level. This indicates resistance in that region.
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Should this remain the case, SUI’s price could drop below the $0.236 nominal pullback point. If this happens, the altcoin risks another correction, which could take it down to the $1 mark.
However, if SUI resists falling below the 0.236 Fib level and rises above $2.67, this decline might not happen. Instead, the token’s value could rise to $3.70 at the 0.618 golden ratio.
Analysts Give Their Two Cents
Interestingly, some analysts have also commented on SUI’s price action. For instance, Fei Chen, CEO of Intellectia.AI and market analyst, told CCN that SUI’s near-term potential depends on several factors but expects it to keep falling.
He, however, noted that SUI could rebound after this potential correction under $1.
“If SUI stays above $0.80-$0.85, a rebound is possible. Positive news and market liquidity could drive a breakout”, Chen mentioned.
This position contradicts that of Michaël van de Poppe, analyst and CEO of MN Capital. On Monday, March 10, van de Poppe wrote on X that the altcoin might have found support after the 50% correction on the higher timeframe.
“SUI is one of those assets that’s likely going to continue doing well. It’s down more than 50% from the recent high and in an interesting support zone,” He highlighted.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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